Werkinkomen

Werkinkomen is the portion of income that a person or household earns from labor activities. It includes wages, salaries, bonuses, overtime pay, and earnings from self-employment. It does not include passive income from assets such as interest, dividends, rent, or capital gains. In economic and statistical contexts, werkinkomen is often referred to as income from work or labor income.

In national accounts and tax systems, werkinkomen is distinguished from capital income. In the Netherlands, for example, income from work and home (Box 1) covers employment income and related components, while Box 3 covers income from savings and investments. The exact categorisation varies by country, but the general idea is to separate earnings derived from labor from wealth-derived income.

Factors affecting werkinkomen include education, occupation, sector, hours worked, age, and experience. Policy and institutional factors such as minimum wage, tax rates, social insurance contributions, unemployment benefits, and collective bargaining can also influence gross earnings and net income from work. Global shifts in technology and demographics may affect demand for certain skills and, consequently, wage levels.

In statistics and policy analysis, werkinkomen is used to assess living standards, poverty, and income distribution, often in relation to total income and capital income. It informs discussions on tax design, social protection, and labor market policies, and serves as a key component in measuring economic well-being at the individual and household level.